Other things the same, which bond would you expect to pay the lowest interest rate?
a. a bond issued by a state with a very good credit rating
b. a bond issued by the U.S. government
c. a bond issued by a fairly new company doing genetic research
d. a bond issued by Nabisco
a
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Use the following supply and demand graph for product X to answer the question below. What would happen if the government subsidized consumption of this product because it has positive externalities in consumption?
A. demand would increase B. price would decrease C. supply would increase D. demand would decrease
Which of the following statements is false?
A) Capital consists of produced goods that can be used as inputs for further production. B) The terms resources, inputs, and factors of production are synonyms. C) Labor consists of the physical, but not mental, talents of people who contribute to the production process. D) Entrepreneurship is one of the four categories of resources. E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.
As the price of cookies increases, firms that produce cookies will:
A. increase the supply of cookies. B. increase the quantity of cookies supplied. C. decrease the quantity of cookies supplied. D. decrease the supply of cookies.
Which of the following policies would be most effective in the steep part of the SRAS demand curve?
a. The interest rate increases by 5 percent. b. The interest rate increases by 12 percent. c. The interest rate decreases by 5 percent. d. The interest rate decreases by 12 percent.